VAT Implications to US

B

bigfeet

Guest
I was looking to know the VAT implications of invoicing a US based company for services being delivered from Ireland. I understood that VAT was exempt from invoices being sent to US companies - Is this the case ? If so, does this mean that I do not need to register for VAT with the Revenue Commissioners if I plan to trade as a Sole Trader or Limited Company ?
 
what services are they? will most of your invoices be to companies outside the EU? will you exceed the threshold for services to EU companies? will you have lots of purchases that will have trapped VAT included (if you're not registered for VAT you can't reclaim VAT on your purchases)?
 
The services would be defined as consultancy and most invoices would be submitted to US ? My planned purchses would be minimum. Does this clarify your points ?
 
Providing consultancy services is referred to as 'Fourth Schedule Services' in the VAT Acts.

Charge 0% (not exempt) on sales outside the EU to both private and business customers. The importance of 0% means you can reclaim VAT on costs associated with these sales.

By the way, register for VAT if sales just to outside the EU. Trading as a Sole trader or Limited Company is irrelevant here.

Will you have any Irish or EU sales?


Regards
Patrick
 
Thanks Paddy,

Yes - I may have some sales into UK and Ireland also - does this make any difference ?
 
Irish sales are 21%.

UK sales are also 21% unless you are provided with a valid VAT number, whereby they are 0%.
 
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